Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.25.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Provision from (benefit for) Income Taxes
The provision for income taxes consisted of the following:
  
  Twelve Months Ended December 31,
  2024 2023 2022
  (In millions)
Current:      
Federal $ 169.9  $ 155.5  $ 73.4 
State 38.3  24.2  27.7 
Foreign 61.9  56.7  40.3 
  270.1  236.4  141.4 
Deferred:      
Federal (47.7) (50.2) 68.6 
State (0.3) 12.4  19.0 
Foreign (18.9) (32.4) 0.5 
  (66.9) (70.2) 88.1 
Provision for income taxes $ 203.2  $ 166.2  $ 229.5 
Domestic and Foreign Income before Income Taxes
Domestic and foreign income before income taxes was as follows:
  Twelve Months Ended December 31,
  2024 2023 2022
  (In millions)
U.S. $ 651.9  $ 573.2  $ 794.7 
Foreign 158.6  144.7  135.0 
  $ 810.5  $ 717.9  $ 929.7 
Provision for Income Taxes Reconciles with U.S. Federal Statutory Rate
The provision for income taxes reconciles with the U.S. federal statutory rate, as follows:
  Twelve Months Ended December 31,
  2024 2023 2022
  (In millions)
Federal statutory rate 21.0  % 21.0  % 21.0  %
Provision computed at federal statutory rate $ 170.2  $ 150.8  $ 195.2 
State and local taxes, net of federal tax benefit 30.1  30.0  34.7 
Foreign differential 27.1  20.5  14.8 
Federal research & development credit (17.6) (24.2) (28.5)
Equity compensation (8.2) (3.2) (6.8)
Tax reserves (5.7) 5.8  4.9 
Reversal of BVS deferred tax liability —  (27.3) — 
Excess officer’s compensation 9.2  8.4  6.1 
Valuation allowance (7.2) 1.9  3.8 
Other 5.3  3.5  5.3 
Provision for income taxes $ 203.2  $ 166.2  $ 229.5 
Effective income tax rate 25.1  % 23.2  % 24.7  %
Components of Deferred Income Tax Assets and Liabilities
Components of the deferred income tax assets and liabilities at December 31, 2024 and 2023 were as follows:
  December 31,
  2024 2023
  (In millions)
Deferred income tax assets:  
Net operating and capital loss carryforwards $ 83.9  $ 101.2 
Goodwill and intangible assets 106.2  116.0 
Employee compensation programs 71.2  59.8 
Foreign tax credits 17.2  17.2 
Employee pension benefits 27.7  26.6 
Reserves and accrued expenses 8.1  6.4 
Accrued legal expense 8.6  9.1 
Research and development costs 27.2  22.3 
Operating lease asset 29.8  25.0 
Other 30.8  24.3 
Gross deferred income tax assets 410.7  407.9 
Valuation allowance (170.8) (178.5)
Total deferred income tax assets, net 239.9  229.4 
Deferred income tax liabilities:  
Goodwill and intangible assets (471.1) (615.9)
Undistributed earnings of foreign subsidiaries (8.3) (6.2)
Depreciation (27.4) (29.8)
Operating lease liability (29.8) (25.0)
Prepaid expenses (16.0) (15.0)
Other (5.1) (2.2)
Total deferred income tax liability (557.7) (694.1)
Net deferred income tax liability $ (317.8) $ (464.7)
Deferred Income Tax Assets, Included in Other Current Assets, and Liabilities
Our deferred income tax assets and deferred income tax liabilities at December 31, 2024 and 2023 are included in the accompanying Consolidated Balance Sheets as follows:
  December 31,
  2024 2023
  (In millions)
Long-term deferred income tax assets, included in other assets $ 33.8  $ 10.2 
Long-term deferred income tax liabilities (351.6) (474.9)
Net deferred income tax liability $ (317.8) $ (464.7)
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
  2024 2023
  (In millions)
Beginning balance (January 1) $ 55.5  $ 56.2 
Increases related to prior year tax positions 1.7  3.1 
Decreases related to prior year tax positions (0.7) (2.0)
Increases related to current year tax positions 8.5  10.6 
Decreases related to settlements —  (0.3)
Expiration of the statute of limitations for the assessment of taxes (20.1) (12.0)
Currency translation adjustment (0.2) (0.1)
Ending balance (December 31) $ 44.7  $ 55.5